2007 China'S Ten Major Business News

A few days ago, the "2007 China's ten commercial news" was jointly announced by the China Federation of Commerce and China business daily.

From the expansion of domestic consumption demand to the publication of a new directory of foreign investment guidance, from the Gome's takeover of Dazhong to the official listing of Wu Shang Lian, these news events which reflect the beating and pulse of commercial circulation industry and refracting the development of the industry inevitably arouse people's concern and reflection.

The Seventeenth National Congress of the party and the central economic work conference stressed the need to expand domestic consumption demand. In October 15th 2007, the Seventeenth National Congress of the Communist Party of China was held in Beijing.

In the report of the 17th National Congress of the CPC, general secretary Hu Jintao pointed out that we should speed up the pformation of the mode of economic development and promote the optimization and upgrading of the industrial structure.

This is an urgent and important strategic task related to the overall situation of the national economy. We must adhere to the policy of expanding domestic demand, especially consumption demand, and promote economic growth to pform from relying mainly on investment and exports to relying on consumption, investment and exports to coordinate the pformation. We must rely mainly on the second industry to drive the pformation from relying on the first, second and third industries.

Subsequently, the central economic work conference held in from December 3 to 5, 2007 put forward that to correctly handle the relationship between investment and consumption, domestic demand and external demand, the most fundamental thing is to expand domestic consumption demand.

Comments: in the past, the expansion of domestic demand was mainly driven by investment.

Now we continue to propose expanding domestic demand, and the focus has shifted to expand consumer demand.

2007's CPI increase is expected to be 4.7%, the highest in 10 years. The statistics released by the National Bureau of statistics show that in November 2007, the national consumer price index (CPI) increased by 6.9%, reaching the peak of history.

Since March 2007, China's CPI growth has exceeded 3% for 9 consecutive months. From 2007 to November 2007, the total consumer price level rose 4.6% over the same period.

To ease inflationary pressure, the central bank raised interest rates 6 times.

Yao Jingyuan, chief economist of the National Bureau of statistics, said that the CPI increase in 2007 is expected to be around 4.7%, the highest annual increase since 1996.

Comment: the reason for the rise of CPI comes from the superposition of international factors and domestic factors.

However, this round of price rises still belongs to structural rise, which is different from overall inflation.

Chongqing Carrefour sales promotion triggered a stampede accident, and then knocked the safety alarm bell. In November 10th 2007, Carrefour supermarket in Shapingba District of Chongqing held the "10th anniversary shop celebration" promotional activities.

3 people were killed and 31 were injured due to overcrowding and stampede. 7 of them were seriously injured.

Carrefour supermarket, located in Shapingba District of Chongqing, has launched the "10th anniversary shop celebration" campaign since November 9, 2007, and launched a series of preferential measures, attracting many people to rush to buy.

Carrefour Shapingba store has been reformed according to the requirements and has resumed its normal business in November 19, 2007.

The store is the main character of the "wall opening shop" incident.

Commented: why does the commercial department's commercial planning spirit and the management measures of retailers' promotion act fail in front of Carrefour?

I'm afraid Carrefour is not the only thing that needs reflection and vigilance.

The Chinese Business Federation called for vigilance in the rapid expansion of foreign investment in the retail sector. In October 10th 2007, the thirteenth Asia Pacific retailers conference was held in Tokyo, Japan.

Zhang Shuping, executive vice president of the China Federation of Commerce, pointed out that the development of China's retail industry on behalf of the Chinese retail industry pointed out that the rapid development of large retail outlets represented by foreign investment is one of the prominent problems affecting the healthy development of China's retail industry.

Zhang Shuping believes that due to the fact that there are no relevant laws and regulations in China, and the super national treatment of foreign retail enterprises by some local governments, the retail stores are not only developing too fast, but most of them are located in the central area of big cities.

While consolidating the development of large retail market in big cities, the retail outlets represented by foreign capital are also accelerating to develop to the two or three tier cities.

Commented: the study of modern circulation industry is by no means a circulation problem, but a very pressing strategic problem faced by China.

As a government, should we discriminate and restrict foreign investment from the perspective of ensuring the healthy development of domestic retailing?

Gome 3 billion 650 million, a wholly hosted 0493.HK, issued a notice at the end of 2007. The company obtained the exclusive management and operation rights of Dazhong electrical appliances through the way of entrust loans to independent third parties through banks.

At the same time, it obtained the exclusive right to purchase shares of Dazhong electrical appliance, and the interest paid by the independent third party company at 3 billion 650 million yuan and 3 billion 650 million yuan plus to the day of stock purchase, minus the profit that has been allocated during the period (before deducting the management fee), the higher price is the purchase price.

After hosting the big and medium-sized business, Gome owned more than 1 stores in the country.

Commented: from competition to competition, the competition of the home appliance chain industry is becoming clearer, but the final outcome is not as simple as distinguishing the number of stores.

In, at the end of 2007, China entered the 12 year of the Chinese stock market and signed a share pfer agreement with the Lotte supermarket in Korea. At the end of the year of 49%, the company sold 78 billion of its 78 billion stake to the latter.

Only 3 days later, the Chinese shareholder of Wan Kelong, the China Federation of trade unions, has another 51% stake in the sale.

According to the pfer agreement, the 1 years of vankelon brand will disappear in the Chinese market.

It is one of the first batch of Sino foreign joint venture commercial pilot enterprises approved by the State Council, and in 2004, the company took the lead in obtaining the wholesale business right of foreign invested enterprises approved by the state.

At present, it has opened 7 warehousing chain stores in Beijing and Tianjin.

Commented: with the increasing competition in our commercial field, when local enterprises try to adapt to the trend of international competition, how to adapt to the local market will also be a long-term problem faced by multinational retail enterprises.

The new guidelines on directing foreign investment issued by the Ministry of Finance and industry have been issued. The real estate industry has totally restricted foreign investment, and approved by the State Council. The national development and Reform Commission and the Ministry of Commerce jointly promulgated the guidance catalogue for foreign investment industry (revised in 2007), which has been implemented since December 1, 2007.

The adjustment will include the investment behavior of the real estate industry, including commercial real estate, all listed in the "restrictions", while the foreign capital entering the service industry and the resource metal industry will be greatly restricted.

The catalogue clearly states that since December 1, 2007, China has restricted foreign investment in high-end hotels, villas, high-end office buildings and international convention and exhibition centers, limiting foreign investment in the two level market pactions of real estate and real estate agents or brokerage firms.

In addition, the development and construction of ordinary residential buildings are deleted from the encouraged investment category of the current catalogue.

Comments: this adjustment fully reflects our efforts to improve the level of foreign capital utilization, and increasingly seeks to "make use of foreign capital" rather than "being used by foreign capital".

The Ministry of Commerce issued the circulation standard "11th Five-Year" development plan for the first time in February of 2007, and the Ministry of Commerce issued the "11th Five-Year development plan" for circulation standards.

The plan clearly put forward the general goal of the standardization of national circulation during the period of 11th Five-Year. That is to say, the key modern, standardized, systematic, scientific and international standard system and scientific promotion mechanism are basically formed, and 300 key circulation standards in 6 major fields, such as retail and wholesale, trade and clothing, producer services, resident services and circulation infrastructure, have been worked out to improve the implementation and supervision environment of circulation standards.

Commented: "circulation standard" 11th Five-Year "development plan", as the first standardized development plan in circulation field, is the main basis for drawing up and carrying out the annual plan of the circulation industry standard, and also an important document for standardizing the market order.

The pace of listing and expansion accelerated and the department store industry surged in 2007. Intime department store, Shenzhen Jiahua department store and new world department store went to Hong Kong successfully. In November 22, 2007, Guang Bai shares were listed on Shenzhen Stock Exchange.

At the same time, the department store enterprises planned to complete the listed financing in 2008 also include Paris spring, Tianhong emporium, Mao Ye Department store and so on.

While actively building the "North China store network" and "Western store network", in December 2007, DQ shares raised 2 billion 40 million yuan through private placement, and was about to invest in the relevant commercial projects such as Shandong, Shanxi and Sichuan.

In addition, foreign stores such as Taiwan new light and three Yue and Lotte Department Store in Korea have also accelerated the pace of opening stores in the mainland, and are mainly located in high-end department stores.

Comments: because of the existence of retail cycle, the development of retail business has fallen from the supermarket to the head of department stores. China's department stores are entering a new golden starting point.

Wuhan commercial alliance group completed the listing, and Wuhan commercial aircraft carrier "launching" was inspired by the Bailian model. In May 2007, another commercial aircraft carrier of China, Wuhan business alliance group, was officially listed.

After listing, Wu Shang alliance held respectively A, Wuhan Zhong Bai and Wuhan Zhong Shang 17.23%, 10.10% and 45.81% shares, and the total sales volume was over 23 billion yuan.

Formally put forward the concept of Wu Shang Lian, to the Wu Shang Lian listing, less than half a year.

The dream of Wuhan's commercial aircraft carrier has been interpreted for 8 years. After the introduction of the "big events" such as the introduction of strategic investors and equity disputes, under the leadership of the government, the dream of Wuhan's commercial aircraft carrier finally came true.

Comment: in Bailian Group, there is not much successful experience to summarize. After the establishment of Wu Shang Lian Group, it is also difficult to see the specific integration steps in the short term.

The reform of state-owned commercial enterprises is not a "union".